In 1999, Gurung moved to New York City, where he interned for Donna Karan while attending Parsons School of Design. In his first year he was awarded the “Best Designer” title at the annual Parsons/FIT design competition. After Parsons, Gurung spent two years with Cynthia Rowley’s design team. Soon after, he became the design director at Bill Blass. Following five successful years at Blass, Gurung launched his own collection, PRABAL GURUNG, during New York Fashion Week in February 2009 at the FLAG Art Foundation in Chelsea. For Fall 2010, he staged his first runway show in the Tents at Bryant Park.

In 2010 he was the recipient of the Ecco Domani Fashion Fund Award and received a nomination for the 2010 CFDA Swarovski Womenswear Award. He was also chosen by prominent fashion editors, retailers, designers and business people for the {CFDA Fashion Incubator} for 2010-2012. In November 2010, Gurung was awarded runner-up for the 2010 CFDA/Vogue Fashion Fund.